Module A
Introduction to IT and Computer Systems
Information and Communication Technology (ICT)
Information and Communication Technology (ICT) is a technology which refers
computer systems (such as computer hardware & storage), software (such as
applications and databases) and systems for communication of information (such
as networking devices and technologies) that combined allow people and
organizations to interact in the digital world.
Computer
An electronic device that stores, retrieves and process data and can be
programmed with instructions.
Functions
Input data: Computer inputs data for further processing
Store data: Computer holds the information before and after processing.
Process data: Computer performs prescribed mathematical and logical operations
on the information at high speed,
Output data: Computer sends the result out to the user via some display method.
Information Technology
Information technology is the use of computers to create, process, store, retrieve,
and exchange all kinds of electronic data and information. Information technology
is combination of people, hardware, software, communications networks, data
resources, policies and procedures that stores, retrieves, transforms and
disseminates information.
Importance and use of ICT
• High speed
• Available anytime
• Available anywhere
• Accuracy
• Memory
• Diligence
• Interfacing
Electronic Banking
Electronic Banking is modern banking techniques using which a Bank customer
can avail banking services without going to a bank branch physically and without
assistance of any bank officials. The electronic banking services:
ATM
ATM or Automated Teller Machine is used mainly for withdrawal of cash by a
bank customer using his debit, credit or prepaid card.
The ATM is equipped with a personal computer which communicate with a
central server of the bank for checking PIN, updating account balance and finally
instructing the cash dispenser to dispense cash.
Bank customers can avail following services from ATM Network:
• Cash withdrawal
• Payment of utility bills
• Fund transfer from customers own account to another account in the same
bank or with another bank
• Checking account balance
• Printing mini statement
Cash Dispenser Machine
A cash dispenser is a machine built in to the wall of a bank or other building,
which allows people to take out money from their bank account using a special
card. In other words, cash dispenser is an unattended machine that dispenses
money when a personal coded card is used.
Cash dispenser means an ATM with restricted functionality of dispensing Cash
only
Cash Recycling Machine (CRM)
There are ATM machines which can accept bundles of money, count the money
supplied in different denominations and check for fake notes. Additionally these
ATMs can deliver the same money received from one customer to other
customers who come to the same ATM later on for withdrawing money. These
types of ATM machine are called cash-in cash-out ATM or Cash Recycling Machine
(CRM).
POS terminal
A point-of-sale (POS) terminal is a hardware system for processing card payments
at retail locations. The advantages of the GPRS POS terminals are as follows:
The merchant does not require a PSTN connection for use of the POS terminal.
The customer does not require to handover the card to the merchant which can
lead the card to be duplicated.
The customer does not require to come to the cash counter for insertion of his
PIN at the PIN PAD of the POS terminal.
It can be used by a small floating shops who sales the goods in different places
such as residences, parks, rail stations etc.
Internet Banking
Internet Banking is a way of performing some banking activities through internet
from home or office. This is also termed as Online Banking.
sms Banking
sms banking is a way of performing some banking activities by sending sms from
mobile phone.
Alert Banking
Alert Banking is a system which sends a sms to the customer when a debit or
credit transaction occurs in the customer’s account.
IVR
IVR or Interactive Voice Response is an automated system where a customer can
call from his land phone or mobile phone and interact with the machine pressing
digits to perform some banking services. These services may include obtaining
information such as balance inquiry or do transactions such as fund transfer and
activate/deactivate a debit, credit or prepaid card.
Advantages and disadvantages of Electronic Banking
Advantages
• Any branch banking
• No location boundary
• Virtual participation
• No hassle of carrying physical money
• No need of instrument for transaction
• No involvement of branch officials
• Any time banking
Disadvantages
• Security
• Cost of communication infrastructure
• Dependency of device
• Presence of knowledge
• Maintenance cost
• 24*7 support personnel
Mobile Financial Services:
Mobile Financial Services (MFS) is a banking system using which a registered
mobile holder can deposit (cash-in), withdraw (cash-out) money from an agent
and perform other transactional activities. Example: Bkash, Nagad, Rocket etc.
Agent Banking:
The concept of Agent Banking was initiated by the Central Bank of Bangladesh in
2015 where all the transaction will be authorized by pressing finger prints in a
device. All kinds of banking transactions except foreign exchange transactions are
allowed in Agent Banking. Agent outlets are licensed by the respective banks in
the rural area which on behalf of the bank perform the transactions.
e-Commerce
e-commerce is buying and selling of goods and services over internet.
m-Commerce
M-commerce (or mobile commerce) is the buying and selling of goods and
services through wireless handheld devices such as cellular telephone and
personal digital assistants (PDAs).
Computer Hardware
Generations of Computer
1st Generation (1951 – 1958): Characteristics: Use of Vacuum Tube or Vacuum
Valve, Big in size, Capability to store program and information, Use of Magnetic
Drum, Punch Card and Magnetic tape. Example: ENIAC, MARK, IBM-650.
2nd Generation (1958 – 1965): Characteristics: Use of IC (Integrated Circuit), Use
of transistor instead of Vacuum Tube, Small in size, introduction of ACCII code,
development of high-level language like COBOL, FORTRAN and ALGOL. Example:
IBM-1620, CDC-1604, NCR-300.
3rd Generation (1965 – 1971): Characteristics: Introduction of Mouse as input
device, Small in size, reduction of price, Introduction of VDO unit and Printer as
output device, use of secondary memory, invention of BASIC language, word
processing and other applications. Example: IBM-370, PDP-II.
4th Generation (1971 – to date):
Characteristics: Invention and use of Microprocessor, Semi-Conductor memory,
ROM, RAM, PROM, EPROM, Higher capacity of storing information, Development
of operating systems like DOS, MAC, Windows and Unix, development of various
application software and programming languages, development of Super
Computer, Laptop, Notebook, Desktop and Personal
Computers. Example: PC, Sever and Laptop of various brands such as IBM,
Compaq, HP, Sun, Dell, ACER.
Types of Computer
Based on the nature of jobs, the Computer can be divided into following three
types:
1. Analog Computer
2. Digital Computer
3. Hybrid Computer
Analog Computer is used for special purposes such as measuring pressure and
temperature, supply of petrol in petrol pumps and determining price, and
controlling speed of a vehicle or Airplane.
Digital Computer works in line with the principles of mathematics. It works using
binary systems, i.e., using 1 and 0. The Computers we use at home and office are
all Digital computers.
Hybrid Computer collects data from various systems using analog process, but
processes the data in digital system.
Based
Based on size and capacity, Computers (or Digital Computers) can be divided into
four types as under:
1. Super Computer
2. Mainframe Computer
3. Mini Computer
4. Micro Computer
Super Computer is very powerful. It requires less time to complete mathematical
processes. Super computer is used in scientific research, for processing of large
volume of data, for controlling missile, space research, design of nuclear plant.
CRAY-1, Super SxII, CYBER-205 are the example of Super Computers.
Mainframe Computer is very large in size. Connecting many small computers into
it, many people can work together in a Mainframe Computer. It is used in large
organizations like Banks, Insurance Companies and Universities. IBM4300,
UNIVAC 1100, NCR 8370 are the example of Mainframe Computers.
Mini Computers are smaller and less costly than Mainframe Computers. Many
people can also work in a Mini Computer together using terminals connected to
it. Relatively smaller Banks, Insurance Companies, Industries, Educational
Institutions and Research Organizations use Mini Computers. IBM S/34 and NCR
S/9290 are the example of Mini Computers.
Microcomputers are very small, cheap and widely used computer. As
microprocessor is used in this type of computers, they are termed as
Microcomputer. Only one person can work at a time in a Microcomputer. For this
they are also known as Personal Computer or PC. Microcomputers are used at
home and office for personal and official purposes. They are also used for
entertainment purposes like playing games, viewing video, listening songs, and
browsing internet. IBM PC, Apple PC and Macintosh PC are the example of
Microcomputers.
Computer Hardware and Devices
The devices of a computer may be divided into five parts, like:
• Input devices
• Output devices
• Processing devices
• Memory devices
• Special devices
Input devices
• Keyboard
• Mouse
Output devices
• Monitor
• Printer
• Speaker
• Plotter
Processing Devices
The devices used for processing of supplied information, data and instructions in a
computer are called Processing Devices. CPU or Central Processing Unit is a
processing device used in computer. The speed and capacity of processing of a
computer depends on its CPU.
The functionalities of a CPU are stated below:
1. CPU sends controlling and time determining signals to all parts of the
computer.
2. Send and receive data between memory and input/output devices.
3. Receive data and instructions from memory.
4. Decode the instructions.
5. Perform mathematical and logical activities.
6. Run program from computer memory.
7. Coordinate between input and output devices.
Based on the architecture, a microprocessor can be divided into 2 groups like CISC
processor and RISC processor.
CISC or Complex Instruction Set Computer is a microprocessor which uses
microcode. Microcode consists of some instructions (software program) which
work from inside the chip. As this type of microprocessor run by software, they
are normally slow. Examples of CISC microprocessor are: 8085, 8086, 8088,
80286, 80386SX, 80386DX, 80486SX, 80486DX and Pentium of Intel, 386DX,
486DX of AMD, 6800, 68000, 68040 of Motorola.
RISC or Reduced Instruction Set Computer is a microprocessor in which less
number of instructions sets are used. It is not software based, rather hardware
based and as such faster than the CISC processor. Banks normally uses RISC
processor-based computers as its main database server in the data center. Unix is
normally used as operating system of such RISC servers. For example, AIX is used
as operating system for IBM RISC servers, Sun Solaris for SUN RISC servers and HP-
UX for HP RISC servers.
Memory Device
Memory devices are the devices where the computer temporarily or permanently
stores the data before, during and after processing. The memory devices can be
categorized into 3 groups: Primary or Main memory, Cache memory and
Secondary or Auxiliary memory.
Primary or Main memory
The memory directly connected to the CPU is called Primary or Main Memory. It is
used to store program, data, instructions and result during execution. RAM and
ROM are the example of such memory.
RAM: RAM stands for Random Access Memory. Computer read all the relevant
data, program and instructions from the input devices or permanent storage and
writes into the RAM for processing. RAM has the following characteristics:
1. RAM is volatile in nature
2. It is a read-write memory
3. During processing the information stay in RAM
4. If power fails, all the information removes from the RAM.
ROM: ROM stands for Read Only Memory. ROM stores a program called BIOS
(Basic Input Output System). List, position and specification of all the devices of a
computer are recorded into the BIOS. Computer at the time of startup recognizes
all the devices with the help of BIOS. The characteristics of a ROM are as under:
1. ROM is a permanent main memory.
2. The information in the ROM can only be read, can’t be modified.
3. The programs required to startup a computer are stored permanently in the
ROM
4. If power fails, the information at ROM does not vanish.
Secondary or Auxiliary memory
The memory which is used to store the user program and information
permanently is called Secondary or Auxiliary memory. Examples are: Floppy Disk,
Hard Disk, Compact Disk, Magnetic Tape, Pen Drive etc.
Cache memory
A special memory placed with the CPU or main memory to increase speed of
processing is called Cache Memory. Cache Memory can be classified into two
types – Internal Cache and External Cache. Internal Cache is placed inside the
microprocessor whereas the external cache is placed on the mother board as IC
(Integrated Circuit).
Special Devices
Special devices are devices used to interconnect input, output and memory
devices. System Box, Mother Board, Power Supply Unit, UPS, Stabilizer are the
example of special devices.
